Current through Register Vol. 54, No. 49, December 7, 2024
Section 71.6 - Permitted adjustments to financial reports(a) A public utility shall make annualization, normalization and ratemaking adjustments to its intrastate data to reflect, to the extent practicable, its results of operations on a ratemaking basis. These adjustments shall be consistent with current Commission policy and practices.(b) Annualization adjustments to bring a public utility's accounts to a 12-month level of activity may include, for example, adjustments to the year-end number of customers and revenues, operating expenses and level of investment.(c) Normalization adjustments to recognize in-period known changes may include, for example, elimination of the revenue, expense and rate base effect of nonrecurring events, recognition of the full year's effect of in-period wage rate changes and normalization of the effect of irregular and infrequent events.(d) A public utility shall make ratemaking adjustments to its intrastate per book amounts to reflect adjustments made in prior cases by the Commission which are not included in the actual per book amounts recorded by the public utility, if these adjustments are still applicable, and adjustments to reflect current Commission ratemaking policy and practices. The required ratemaking adjustments will be specified by the Commission periodically by Secretarial letter and will be based on Commission precedent regarding the major ratemaking issues that apply to public utilities in this Commonwealth. If a public utility has eliminated a prior rate case adjustment because it was deemed to be no longer applicable, the public utility shall identify the adjustment and explain the rationale for its elimination.(e) In determining the intrastate per books amount of a public utility's revenues, expenses and investment, for the purposes of the financial reports required by this chapter, the following shall be considered intrastate: (1) Energy cost revenues and associated expenses.(2) Gas cost revenues and associated expenses.(3) Other public utility revenues, expenses and investment that under Commission precedent are deemed to be intrastate for ratemaking purposes, as specified in the Secretarial letter referenced in subsection (d).